Hill County Commissioners Court rescinds moratorium on data center in the wake of lawsuit
The Hill County Commissioners Court unanimously voted to rescind a recently approved data center moratorium. This decision followed a federal lawsuit filed by developer RCM Hill, LLC, which argued the county exceeded its legal authority in imposing the ban.
The Hill County Commissioners Court in Texas unanimously voted to rescind a data center moratorium during a special meeting on Thursday. The moratorium, initially approved on May 12 with a 3-2 vote, had temporarily paused new large battery storage, power generation, and data center projects for up to one year in unincorporated areas of Hill County.
This decision came after RCM Hill, LLC, a Texas developer, filed a lawsuit in federal court in Waco against Hill County, County Judge Shane Brassell, and Commissioners Jim Holcomb and Larry Crumpton. The developer, planning a 1,235-megawatt data center known as "Project Aquila" on over 800 acres, argued the moratorium was "illegal." RCM Hill contended that Texas counties lack broad "home rule" or general police powers and can only exercise authority explicitly granted by the state constitution or statutes. The developer asserted that no Texas law grants Hill County the power to impose such a countywide construction moratorium, especially one targeting data centers and large energy projects, labeling it "ultra vires" or beyond lawful powers. Precinct 3 Commissioner Scotty Hawkins, who had initially voted against the moratorium, resigned during Thursday's meeting.